Cattle on Feed Report Supportive
USDA's monthly Cattle on Feed Report showed all categories on the friendly side of the average pre-report guesses. The combination of smaller-than-expected Placements and heavier-than-expected Marketings last month left the Sept. 1 feedlot supply slightly less than anticipated.
| Report expectations | USDA | Avg. Trade Guess | Range |
| % of year-ago levels | |||
| On Feed | 93 | 93.5 | 92.7-96.0 |
| Placements | 89 | 91.6 | 86.5-101.9 |
| Marketings | 96 | 95.5 | 93.5-100.0 |
A breakdown of calves placed into feedlots last month shows all weight categories down from year-ago, suggesting the animals just aren't there -- or cow-calf operators are holding back heifers for breeding purposes. Because we don't have a mid-year Cattle Inventory Report any longer (due to budget cuts), we are left guessing at the reason. But we know that calf placements are declining and that trend will very likely continue.
With all three categories coming in on the bullish side of the pre-report guesses, the data should give cattle futures a boost on Monday. After technical action hinted that a short-term low was posted earlier this week, this could (should) be enough to trigger the next rally attempt in live cattle futures.
